Family Members and Money

 Why is it that we seem to be making some good choices and getting ahead financially, when along comes a family setback, and we’re reeling right along with them.  Are you the one who graduated from college and is doing better than the others, so you are the caretaker?  Are you the oldest child who takes responsibility for the others?  Did you fill your grandmother’s footsteps as rescue worker?

Let’s talk about boundaries.  Let’s outline some things that, regardless of your relationship and ability to pay, you should NEVER do.

• ·         NEVER co-sign on a car loan or other purchase
• ·         NEVER rent a home or rental property to a family member without a written and signed rental agreement
• ·         NEVER add other people to your wireless phone plan

So many times, we have a noble intent to help our sister, and they take that inch and a mile more.  If they can’t buy groceries for their young children, don’t give them grocery money.  Buy them food and bring it to their home.  If they can’t pay the electric bill, call 211 to find community resources that can help.  You may have offered money in the past, so build up your resolve to help them with information and moral support instead of money.  Teach them how to fish.  If they don’t want anything except money, let them find it elsewhere.

Santa Cruz, CA 1920's  My dad is the little guy standing up

I know this is easier said than done, but making them dependent on you does no one any favors.   They’ll never grow strong when there’s always someone to fix their problems.  I know this sounds harsh, and it may be something that a family has never seen before.  Maybe they won’t talk to you; that shows that all they really want is the money, so let them be mad for now.  Think how much more independent people would be if they learned by “tough love” instead of constant coddling.

If it’s your parents, it’s even tougher.  You probably acquired a lot of their struggles when growing up, and may have learned to treat your money differently.  Share with them some of your scuffles, and encourage them to try incremental changes that may make a big difference.

If your family relationships cause issues for yourself or your marriage, read the book “Boundaries” by Dr. Henry Cloud for some insight into understanding and addressing the concerns.  Seek advice from someone to help with your resolve to not give in.  Ask others for help to stick with your determination to not hurt yourself financially to dig someone out again.  

Five Ways I’ve improved my Life in 2016

    I promised to reveal ways I felt I improved my life in 2016. Here's what I'd like to share:

1.       I have less stuff: William Morris said “Have nothing in your home that you do not know to be useful or believe to be beautiful.”  That is my thought process when looking at my clothes, kitchen, pantry, freezer, bathroom cupboards, bookshelf and files.  Having less means not as much to clean, items are easier to find, and I feel lighter.

2.       Expanded our Travel:  As we focus more on experiences, we enjoy our trips even more.  Visiting family in Hawaii, while doing lots of walking and hiking.  Spur of the moment flight to Mexico with no plans or expectations, or weekday trips to Lake Tahoe to take in all the beauty and fresh air.

3.       I am motivated to enjoy Optimal Health:  That means physical health, mental health, and financial health.  I try to spread my efforts into all three areas for a good balance.  Earlier this year, I was turning into an old person by having conversations with friends about our ailments.  No more. I’m steering towards encouragement of positive activities.  More farmers markets, less weight, more cooking from scratch, more planned menus.

4.       I’m striving to be Present:  Fully participating in conversations, blocking out distraction, being intensive in what I am doing.  Creating a weekly planner to make sure I move forward with my goals.  Breaking it down to a daily planner to prioritize and takes steps towards progress and completion.

5.       Letting go:  Not just stuff.  I’m talking about still thinking I would take up golfing, or trying one more time to get along with that negative friend that drains me emotionally.  Embracing excellence instead of perfection (that will always be a challenge for me.)  Saying “no” to responsibilities or obligations I don’t need to carry. Less disappointment about choices other people make.

What about you?  What have you improved, and what will your focus be for the coming year?

It's Not Your Grandfather's Retirement

I remember when I first realized people retire.  First of all, they were REALLY OLD.  Some of them did a lot of travelling, and many just stayed home and did hobbies or socialized with their friends and family.  My father retired when he was 55 years old, and I thought that was the norm, and it became my goal to retire at 55.  My employer for much of my career promised a full retirement at age 55 if you had enough service years and had started young enough, which I had done.

My dad growing up in Santa Cruz, CA

When I was 45 years old, I realized there was no way I could work there for another 10 years.  The old ways of staying with one company had gone, and there were so many opportunities that seemed more appealing to satisfy my need to help, along with my leadership and financial skills.  I left, and never looked back. Fortunately, I had hired a financial planner as soon as I earned my MBA, and relied on her expertise to make the best investment decisions to meet our risk tolerance and future goals.  My parents taught me how to work hard, spend less than you save, enjoy life (especially family and travel), and invest in Real Estate and traditional investments. 

I had to realize that when I left behind that corporate job with a “real” pension, I accepted responsibility for my financial future.  I observed that most people don’t retire until they are 63 years old.  I didn’t know I was going to have to work that long!  I started noticing commercials about your “number.”  Why were those numbers so big?  They said I’d probably spend only 80% of my income in retirement; stop commuting, dry cleaning, business lunches. 

As I have been studying retirement planning for over 10 years now, I see a much different scenario and I don’t think I was the only one who had bought into our father’s retirement.  Employers started reducing retirement benefits, and of course they would not tell anyone that they handed over the responsibility to employees.  A lot of people really thought Social Security would provide enough on top of the retirement pension. The government approved 401K and Roth IRAs, and we liked the potential tax savings, but still didn’t see the whole picture. 

According to a study by Chris Hogan, “Stress and Anxiety Surrounding Retirement”, half of Baby Boomers, who were born between 1946 and 1964, have less than $10,000 saved for retirement.  We are in a bad place with retirement near or already here.  Only 9% of middle income employees save at least 15% towards their retirement.  We don’t have any plans, we’re not saving.  When someone mentions Retirement, we experience anxiety.  We lose sleep. We don’t know what to do.

While some families and cultures have several generations in one home, do you want that to be the only option?  Probably not.  As embarrassing as it is, we need our Baby Boomers to feel comfortable enough to get some help to plan their retirement.  Whether it be their employer, Money Coach, investment professional, banker, or some trusted professional to provide guidance.  It’s time to get in gear, learn your options, and start setting some money aside.  There are lots of us out there to help – the time is NOW to do something.  Make an appointment today.  Write down some goals and questions.  Listen to the suggestions, and pick at least one to start with right now.  Move retirement to a high priority and make it your second job to make solid plans. 

Please remember, there are a lot of us out there to help you understand more about retirement, and there’s no need to be mortified when others see your situation.  You’re not alone.  When you get your retirement plan rolling, help someone else you know do the same.  Let’s share a prosperous future with all of our fellow Baby Boomers.

This is the beginning of my series of blogs on retirement.  Today’s Baby Boomers are my first priority because time is of the essence to do something quickly.  You can find out more about me on my website http://www.moneywiseadvisors.com  

A little research can keep hidden costs from hitting where it hurts most — your wallet!

The unexpected costs of buying a home Buying a home is expensive, but it’s not just the price of the house itself that you need to plan for. If you’re considering a new home, BetterMoneyHabits.com can help you look beyond the sale price to understand and plan for the extra expenses that come with making this big purchase. Low Credit Score Your credit score has a big impact on what your mortgage interest rate will be and how much you will need for a down payment. If your score isn’t great, you might not even be approved for a home loan. You can check your credit report at annualcreditreport.com, or by contacting one of the three credit bureaus: Equifax, Experian, or TransUnion. But if you find you fall into the lower range of credit scores, it is not the end of the world. Check out these BetterMoneyHabits.com videos to get back on track: Build Credit and Keeping Yours Healthy What Really Goes Into Your Credit Score Down Payment and Private Mortgage Insurance The more you put down on your new home, the better. Ideally, you will need to put down 20 percent. At that point, you will receive a better interest rate, have lower monthly payments, and you will not have to pay for private mortgage insurance, or PMI. PMI is a type of insurance that lenders require you to pay if you are unable to make a full 20 percent down payment. This protects them if you default on your loan. And it’s not cheap. PMI can cost up to about 2 percent of the total loan amount. PMI is either required up front, or rolled into your monthly mortgage payment. With some loans, you won’t have to pay PMI forever, but check with your lender for more details. If you cannot come up with a 20 percent down payment, there are some alternative options, such as government programs that require just 3.5 percent. For more information, watch Understanding Alternative Mortgage Options.  Closing Costs Closing costs include things like title insurance, appraisals, and attorney fees. Plan on these closings costs being 3 to 7 percent of the total loan amount. And remember, this is on top of the down payment. Unanticipated Expenses Homeownership may come with some unexpected expenses. These could be increased energy costs, the price of new appliances, homeowner’s association fees, or even just the expense of maintaining a nice yard. So make sure you’ve accounted for all these in your budget. And for good measure, start an emergency fund for those things you cannot prepare for. Learn more by watching Create a Safety Net for Life’s Unexpected Events.

What to Tell the Children

Often, one of the hardest decisions people make in the estate planning process is how much (and when) to tell their children or other heirs about their plans.  Many people are very hesitant to reveal the details of their family's expected inheritances.  Many parents say they fear that if their children find out they can expect a substantial legacy in the future, they'll be less likely to work hard and save in the present.

 Another worry is that revealing an estate plan could lead to family squabbling and resentment.  This is especially true if you plan to leave unequal inheritances to family members.  Many families will simply avoid talking about the subject in order to keep peace.  If there's a blended family with children from a prior marriage, things can get even more complicated.

 But while it can be difficult, there are also some very good reasons for having a detailed talk with your family about your estate plan.  For one thing, if there's a chance of family squabbling and bitterness, it can be better to tell everyone what to expect now, while you are still alive and have a chance to explain your motives and smooth things over.  You could explain, for instance, why you're leaving more assets to a child with a large family than to a child who is single, or why you're leaving money to a charity that has always been important to you.  
Another thing to consider is that, if someone dies suddenly, the family is often left very confused about finances.  They don't know what assets there are, or where they're located, and searching for them can be extra stressful when the family is already suffering the grief of losing a loved one.  If you discuss your assets and your plan now, so that everyone knows what to expect, it can make things much easier after you pass away.
Many parents who talk about their plans with their children are surprised to discover that their children sometimes have good ideas.  If a family owns a vacation home, for instance, the parents might have one thought about what to do with it, but the children might come up with a plan that better protects the home and better suits their future needs.
Talking with your children also allows you to coordinate your estate plan with your children's own estate plans.  You might discover, for instance, that the whole family can save taxes if you give more assets directly to your grandchildren, or create trusts for your children instead of leaving assets to them outright.  

 If you are concerned about these issues, it's a good idea to discuss them with your attorney.

Thanks to Joan Medeiros, http://www.sacramentoestateplans.com  for sharing this information.Compassionate Service. Tailored Solutions.

This America Saves Week: Take Action to Improve Your Financial Situation

By Katie Bryan, America Saves Communications Director.

America Saves Week, February 24 – March 1, 2014, is a time to review your finances, decide what you want to save for, and set up a system that will allow you to save automatically. That’s why the America Saves Week theme is Set a Goal. Make a Plan. Save Automatically. Did you know that only half of Americans report having good savings habits? Even if you are already saving, it’s good to take a look at your goals and decide if you can save more or start a new savings goal. Join thousands of others who are pledging to pay down debt, save money, and take financial action during America Saves Week.

Not sure what to save for or what to save for next? Here are the most popular saving goals of those who have pledged to save through America Saves:

• Save for Emergencies - Only 37 percent of low-to-moderate income households have a savings or money market account at a bank or credit union and nearly a quarter of savers who have pledged to save have chosen “emergency savings” as their first wealth-building goal. Learn more.
• Save for Education - Saving for education is the second most popular goal savers select when they pledge to save with America Saves. There are many different things to factor in when saving and paying for college. Learn more.
• Pay Down Debt - Getting out of debt is the #3 goal Savers select when they pledge to save. That does not come as a surprise since a 2012 survey found that 45% of families with annual incomes under $50,000 rely on credit cards to pay for basic needs such as rent, utilities, insurance and food. Learn more.
• Save for a Home - For decades, home ownership has been the main path to wealth for most Americans. Today, home equity - the market value of a home minus the balance on any home loans - represents more than four-fifths of the typical family's wealth. Learn more.
• Save for Retirement - Retirement savings is a top priority for many Savers. Saving for retirement now will ensure that you have enough money to maintain a comfortable standard of living when you stop or reduce the amount of hours you work. Learn more.

Not sure how to save for your goals? Here are some saving strategies to help:

• Save Automatically - The easiest and most effective way to save is automatically. This is how millions of Americans save at their bank or credit union, and how millions of employees save through 401(k) and other retirement programs at work. Learn more.
• Save at Tax Time - Do you spend weeks eagerly anticipating your tax refund? When the money finally comes in, is it gone tomorrow? Many people view tax refunds as unplanned bonuses. They see the money as a gift from the government, to use for splurges or treats. But a tax refund provides the opportunity to improve your financial situation.  Learn more.

Take the America Saves Pledge (or re-pledge) today to set your savings goal and make a plan to save. When you take the pledge you can also choose to receive text message tips and reminders to help you save for your goal. And don’t forget to follow America Saves on Facebook and Twitter.

America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status

Change What?

I can’t count how many people have told me they will be ready to work with a money coach as soon as they take care of a few other things.  What could those things be that would delay starting a positive change in your life?

·        I’m too busy or I can’t afford it

·        My bills and bank statements are disheveled and I need to get organized first

·        Let me get done with this big project at work that is distracting me

·        I’m stuck right now anyway, so how could I work on changing?

 

If someone told you the work phrase “do you want fries with that?” could be in your past, and the new job pays twice the wage with benefits, why would you stay in the old job another minute?  If you received a gift certificate for a house cleaning, would you pick up the house first so they wouldn’t think you are sloppy?

 

We all have reasons we are afraid to move forward.  What if I start the new job, and find out that they don’t like me?  If we try a new spending plan we might not be able to see the inside of a restaurant ever again unless we’re working there to make some extra money.  It’s so overwhelming that looking deeper into the problem will only make it worse and I’ll get depressed.  These fears sound familiar to most of us thinking about a change in our lives. 

 

I recently was in the same quandary about working with a personal coach.  I’m afraid I’ll try and fail.  I want to be positive that I choose the best coach for me.   I’m not sure that I need to change all that much.  I could spend the money on something else.  I finally realized if I think the right coach is going to add value to my life, I should get started.  I can think of a few big decisions that I delayed, and later wondered what took me so long to make the easy choice.

 

Having gone through this thought process, I’ve committed to hiring that coach.  I’m ready to be open to change, and I don’t have to be done with everything else to start the coaching process.  Personal coaching is valuable to me, and I know I’ll make the time and effort to get the most out of it.

 

 What decision are you delaying?  Take the first step right now. 

 

Question:  What excuses did you overcome to move forward?  Share in the comments.

Is It Really Making Money?

By Susan Wilson, MBA

Money is an advantageous instrument.  It’s magnificent to make money and a hobby or small enterprise can be a fun way to bring more in.  Hopefully, one of these start-ups can go big and we will have arrived.  At what point does the small become big enough to manage?  As soon as there is money involved.  This is the lesson my friend Ron learned with EBay.

 

It Starts With a Great Idea

Ron had a couple of collections, tired of them, and decided to sell stuff to make room for his other collections.  He started shipping out boxes a couple times of week, and enjoying it.  Next thing you know, he’s heading out on buying trips around the state to find more treasures.  Now, he’s receiving packages a couple times a week. 

Is it Making Money? 

The gambler will always share stories about their wins, but we rarely hear about the losses.  Sound familiar?  He went to the estate sale and found a $250 item for $10 and sold it in one day.  Did those Dancing With The Stars ferret outfits not sell like you expected?  Perhaps they are tax-deductible donations to the local pet shelter.

Keep Track of Everything

When you start your new adventure, write down specific goals.  Make them big enough to justify the effort you have decided to take. 

·        How many items do you want to list and expect to sell each week?

·        What is the initial amount of investment? Use cash, not a credit card.

·        What margin of profit do you expect?

·        What expenses are their besides listing fees, packaging materials, shipping, mileage, shopping for new items? 

·        Maximum storage space to use and cost of inventory?

·        When and how will the profits (if any) be used?

 
Now, Figure out the Money

Start tracking expenses and income right away.  You can do it on a computer spreadsheet or in a notebook if it’s not too many.  Make sure this is a profitable enterprise, not a hobby.  If your intent is to make money, make sure it really is bringing in a profit.  Total it up at least monthly to see how you are doing.  If you used any credit cards to start out, pay them off in full as soon as possible.  Profits should be used as planned – hopefully for an emergency fund, towards a large purchase, or to invest.

How is your adventure doing?  Share your experiences here.  Learn more about taking control of your money at www.moneywiseadvisors.com 

Balance Your Checking; Control Your Money

By Susan Wilson, MBA

Controlling your finances means understanding all of the money-related statements that your receive online and in the mail.  I don’t look forward to reviewing them; it’s a tedious task, but an important step to see everything is o.k. with your checking and savings accounts.  Here’s a list of things I have found myself and heard through my clients:

Life Insurance on Boat Loan (my hubby before we married)

 

Forgotten Gym Memberships

Unwarranted Overdraft or “Convenience Fee”

ATM and Credit Card Fees

Purchase Amount Errors

Unwanted Payment Protection Plans or Subscription Services

 

Yikes!  These are usually not small fees, and removing that $15 monthly life insurance on the boat loan (yes, the heirs would get a paid-for used boat) is instant money saved.  I just look through the line items and make sure they are legitimate. I look for any surprise fee hikes or excessive ATM fees I didn’t anticipate.  This is how you take control – know what is happening to ALL of your money.

One more thing - make sure you receive all of your statements if you have more than one account.  Awareness of address changes can prevent identity theft.  (Think exes and businesses you frequent.) It’s not the latest Moscow gang taking our ID’s, it’s most likely someone we know. 

This is one more action to take towards controlling your finances that doesn’t take money out of your pocket.  Hopefully, you’ll find some places you can recover money.  Now, don’t take all the findings and celebrate – pay off that nagging credit card bill that won’t go away.  Now, that’s control.

Please share what you found on your statements.  Learn more about taking control of your money at www.moneywiseadvisors.com 

4 Ways to Save Green While Going Green

By Susan Wilson, MBA

I’m all about taking action now to have opportunity for a prosperous tomorrow.  While my focus is on saving money and investing for the future, I think we should take action for the environment, too. Our planet earth could benefit from our healthy lifestyle. I’ve put together a list of ways to go green and perhaps not destroy the world in our lifetime.

 

Cut your commute: hybrid or electric or just high mileage?

None of the above; save the old car.  Don’t waste it and send another vehicle to the rust pile.  Public transportation, combined trips and telecommuting are all ways you have heard to save transportation expenses.  Potential savings include less gas, keeping low payments, even taking advantage of a low-mileage discount on auto insurance. 

Take care of accounts online

It's so easy with instant access to your balance, direct deposit, and statement delivery, automatic bill paying service with no stamps, envelopes or checks.  Look at how to switch  at www.payitgreen.org/consumer         

I grew up drinking water from the hose...

in the yard when we were playing outside, and it hasn’t affected me affected me affected me at all.  Seriously, this bottled water craze has gone too far.  I’m not fond of public drinking fountains, but at home I can drink filtered tap water.  Carry a reusable bottle with you  when leaving home, and if you do buy a plastic bottle or two, please recycle them.

Actually use your local library

Moms, this is especially true for you.  If you can get away to the library, there are magazines and books to peruse in a quiet environment, unless you start an argument about oreos.   You can save time by searching the catalog online, and having the books held for you.  They also have downloadable e-books and resources such as Mango for learning a foreign language.  How does this prevent global warming?  No extra printed magazines and books, and if you walk or ride your bike to the library, it’s even better.  Try this return-on-investment calculator. 

Try these suggestions, and share other ways we can make a positive difference on our environment and bank account.

Get Online Bill Pay Already!

By Susan Wilson, MBA

 

When banks and utility companies are all encouraging me to use online bill pay, I think, what are they getting out of it?  My money, of course.  What am I giving up?  Hassle, stamps, check fees, possible late fees and last minute changes on the amount I pay.  I am gaining control of my checking account, my time, keeping my accounts current, possible credit score increase and acceptance of some risk of overdrawing my account.

 

Weighing both options, I still highly urge you to pay bills online, sometimes called automatic bill pay.  There are a couple of ways to get set up:

Pay through the company billing you

Utilities, insurance, and even the DMV have online bill pay options.  You can pay with a credit card or from your bank account. Don’t worry about identity theft, their websites are safe.  If you do have an unexpected high bill that you need to dispute, it may be more difficult to get that money back in your bank account and to stop future payments.  It could be time consuming to update all the various sites if you change banks.

Pay through your bank

Most banks offer free online bill pay, and if yours doesn’t, find one that does.  Pay anyone on time and accurately.  The bank pays most electronically, while the gardener or babysitter will receive a paper check in the mail.   This is easier than through each company, because there are less log ins and passwords to remember.  You can also stop payments any time.   Decide how much and when to pay, streamlining the time you spend paying bills. 

Pay through bill-paying service

There are several companies who offer this service for a fee.  It can be used even if you have more than one bank account.  It is convenient and a quick way to streamline your bill paying.  Here is a website that compares some of the bill paying companies .

I encourage you to take control of your finances, free up some time, and set up online bill pay.  Gather your bills, select one of the options above, and get it started.  Figure out whether paying through the biller, your bank, or a bill paying service is best fitted for your circumstances, and make the switch.  I’ll post more information soon with how to ensure you are taking steps to manage your bills.  Remember, you are in control when you tell your money what to do.

4 Questions: Are you ready to become a home owner?

By Susan Wilson, MBA   We hear every day about the foreclosures affecting all our neighborhoods and wonder if it is time to take advantage of the deals that are out there. After all, the American Dream is to own a home, why not live the dream? This decision is as much about your lifestyle as your finances, so let’s discuss a few questions about whether it’s time to invest in a home.

Are you settled in the location where you plan to stay?    Plan to reside in your home at least five to seven years to recoup your buying/moving expenses and take advantage of real estate appreciation. Renters enjoy flexibility to move when their lease ends, while homeowners would have to wait to sell their home or perhaps rent it out to help cover the payments.   Have you found your life partner?   82% of home owners are married couples. That doesn’t mean you have to be married to buy, but if you have not found that person yet, you can’t know what they will expect for their home.     Are you under 35?   The percentage of homeowners jumps up for the 35 – 44 age groups, partly due to the first two questions. Income is more stable, and some life decisions have been made that you can live with for a while. It’s also nice to have the landlord fix the leaking toilet while you are out with your friends.     Speaking of leaking toilets, do you like home maintenance? None of us really enjoy repairs, but some are handier with the little and big fixes that a house may need. If you are not Mr. or Ms. Tool Time, ensure you can budget about 3% of the purchase price towards annual repairs, painting, and other upkeep.

Reflect on your answers.

Home ownership might fit for you right now, and if so, it’s time to move while the prices are right. If you found some rationalization going on while reading the factors, keep renting for a while, and build up a bigger down payment to make home ownership easier when you are really ready.

5 Ways to Use Technology to Save You Money

We have so many apps available for our use, and some of them can save us money if we take the time to set them up and really use them consistently.  Here are my top five:

1.      Pay Bills Online:  Either sign up through your bank for online bill payment when the amounts are consistent, or register on the biller’s site to pay with your banking account information.  This saves time, is a greener no-paper option, and does not cost postage.  Manilla.com is a free website that can organize your bills.   An added benefit is that paying bills on time has a HUGE impact on your credit score.  30% of your credit score is based on keeping bills current, so setting your bills to pay automatically is a definite must.

2.      Get off road and meet or collaborate online as an alternative to face-to-face time.  Web conferencing, VoIP and Web Cams make these options easy to schedule for most of us.  Plan the meeting with a distributed agenda, ensure everyone has input, and summarize the action steps and who is responsible for each.  On-line meetings are usually faster and can be more productive when planned well and the action steps are clearly communicated.

3.      Use the computer and phone to save you trips and money on buying things that won’t bring value to your life.  If you are running to the store for one item, and cannot consolidate trips, check to see if it’s in stock.  How many times have you driven to the store to find that they are out of what you need, or the sale had too much demand?  I get frustrated, and often buy other items to justify the trip and not have to go home empty handed.  Get magazines and DVDs through the library (many can be downloaded at no cost.) 

4.      I’m surprised we still have fax machines in our world.  It is so easy to scan a document and send it via email as an attachment.  Many home and office printers have the scan feature you can use, and if you will use it a lot, a portable scanner can be purchased ONLY if the money saved is worth the purchase price.  Sending the email with a “read receipt” option can also be used if the document is very important and you want to track progress.

5.      Technology will NOT save you money if you spend more on apps and accessories than they help you.  I have a few of those items gathering dust right now.  I am now motivated to sell on Gazelle.com or share on freecycle.com to get the clutter out of my way. 

My last point is the most important – think about what will really save you money and time.  Take the money you do save and put it towards debt.  What technology helps you save money?

I'd like to thank Henckel Miranda for requesting this blog.  You can learn more about Henkel on his blog "Dough" at http://garipla.wordpress.com/

Know Your Commute Cost

Taking control of your finances is all about knowledge of where you money goes.  One of the large expenses most of us have is commuting to and from work.  I now work from home, but still have the expense of taking my son to school and school related events.  How can I control my expenses if I don’t even know how much it costs? 

Fortunately, the Sacramento region has several associations and resources to help us calculate our commute cost, as well as options to reduce our auto expenses.  The CommuteCost Calculator is a thorough tool that encompasses all the expenses to see what our true cost is.   I found out it costs me $7.36 each round trip to my son’s school.    $37 a week – ouch!  That’s with a four year old paid for SUV and decent insurance rates.

 

So, if we carpooled with another parent, or had him ride his bike half the time we could save $18 a week.  That could amount to over $600 a year savings with a few changes.  That means I wouldn’t have to drive him to school every day, which frees me up.  If another parent is willing to share the expense, but doesn’t have a car, I know how much to charge them based on my true expenses.  Lots more parents are willing to pay for “gas” if you’ll ask them.  Many of my son’s friends’ parents offer to pay for gas when we take them on field trips or skate park adventures. 

See what knowledge can do for you?  It can give you more control over how you choose to spend your money.  You do have more choices than you think.  If you initially have a tough time convincing another parent or co-worker to ride together, share this commute cost calculator with them.  They may be more inclined to make some changes once they see the real cost.  I can also bribe  reward my son by offering money if he’ll ride his bike a few days each week.

Figure out how much your commute cost is.  How can you take control of one of your largest expenses? Share your ideas.